PowerShares QQQ Trust, Series 1 (NASDAQ: QQQ) and Compass Diversified Holdings (NYSE:CODI) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.
PowerShares QQQ Trust, Series 1 pays an annual dividend of $1.30 per share and has a dividend yield of 0.9%. Compass Diversified Holdings pays an annual dividend of $1.44 per share and has a dividend yield of 8.4%. Compass Diversified Holdings pays out -276.9% of its earnings in the form of a dividend.
Volatility & Risk
PowerShares QQQ Trust, Series 1 has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Compass Diversified Holdings has a beta of 0.57, indicating that its stock price is 43% less volatile than the S&P 500.
This is a summary of recent recommendations for PowerShares QQQ Trust, Series 1 and Compass Diversified Holdings, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|PowerShares QQQ Trust, Series 1||0||0||0||0||N/A|
|Compass Diversified Holdings||0||0||4||0||3.00|
Compass Diversified Holdings has a consensus target price of $19.00, suggesting a potential upside of 11.11%. Given Compass Diversified Holdings’ higher probable upside, analysts plainly believe Compass Diversified Holdings is more favorable than PowerShares QQQ Trust, Series 1.
Valuation & Earnings
This table compares PowerShares QQQ Trust, Series 1 and Compass Diversified Holdings’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|PowerShares QQQ Trust, Series 1||N/A||N/A||N/A||N/A||N/A|
|Compass Diversified Holdings||$1.17 billion||0.88||$199.58 million||($0.52)||-32.88|
Compass Diversified Holdings has higher revenue and earnings than PowerShares QQQ Trust, Series 1.
Institutional & Insider Ownership
38.4% of PowerShares QQQ Trust, Series 1 shares are owned by institutional investors. Comparatively, 37.7% of Compass Diversified Holdings shares are owned by institutional investors. 2.4% of Compass Diversified Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
This table compares PowerShares QQQ Trust, Series 1 and Compass Diversified Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|PowerShares QQQ Trust, Series 1||N/A||N/A||N/A|
|Compass Diversified Holdings||2.20%||6.42%||3.06%|
Compass Diversified Holdings beats PowerShares QQQ Trust, Series 1 on 9 of the 11 factors compared between the two stocks.
PowerShares QQQ Trust, Series 1 Company Profile
PowerShares QQQ Trust, Series 1 is a unit investment trust that issues securities called Nasdaq-100 Index Tracking Stock. The Trust’s investment objective is to provide investment results that generally correspond to the price and yield performance of the Nasdaq-100 Index. The Trust provides investors with the opportunity to purchase units of beneficial interest in the Trust representing proportionate undivided interests in the portfolio of securities held by the Trust, which consists of substantially all of the securities, in substantially the same weighting, as the component securities of the Nasdaq-100 Index. Invesco PowerShares Capital Management, LLC is the Sponsor of the Trust and The Bank of New York Mellon is the Trustee.
Compass Diversified Holdings Company Profile
Compass Diversified Holdings (the Trust) and Compass Group Diversified Holdings, LLC, (the Company), acquires and manages small and middle-market businesses. The Company operates through segments include Acquisition Corp. (5.11 Tactical), The Ergo Baby Carrier, Inc. (Ergobaby), Liberty Safe and Security Products, Inc. (Liberty), Fresh Hemp Foods Ltd. (Manitoba Harvest), Compass AC Holdings, Inc. (ACI), AMT Acquisition Corporation (Arnold), Clean Earth Holdings, Inc. (Clean Earth), and Sterno Products, LLC (Sterno) segments. The Company categorizes the businesses into separate groups of businesses, such as branded consumer businesses and niche industrial businesses. The Company also owns a non-controlling interest in Fox Factory Holding Corp. (FOX). Compass Group Management LLC, (CGM or the Manager), manages the day to day operations of the Company and oversees the management and operations of its businesses pursuant to a management services agreement (MSA).
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